BankUnited Earnings: Here’s Why Shares are Up Now

BankUnited (NYSE:BKU) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.8%.

Results: Adjusted Earnings Per Share increased 2.17% to $0.47 in the quarter versus EPS of $0.46 in the year-earlier quarter.

Revenue: Decreased 14.67% to $176.37 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: BankUnited reported adjusted EPS income of $0.47 per share. By that measure, the company beat the mean analyst estimate of $0.45. It missed the average revenue estimate of $176.61 million.

Quoting Management: John Kanas, Chairman, President and Chief Executive Officer, said, “We are thrilled to have achieved an important milestone this quarter with the launch of the BankUnited franchise in New York. The New York launch coupled with sustained growth in Florida and our strong financial performance underlie our positive expectations for the Company’s future.”

Key Stats (on next page)…

Revenue decreased 20.56% from $222.02 million in the previous quarter. EPS decreased 38.16% from $0.76 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.42 to a profit $0.44. For the current year, the average estimate has moved up from a profit of $1.65 to a profit of $1.72 over the last ninety days.